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Get filing alertsForgent reports 103% revenue growth, record $867M bookings, raises FY2026 guidance
Filed May 14, 2026 · Period ending May 14, 2026 · ~1 min read
Key Changes
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high
Q3 revenues hit $379M (up 103% YoY) with record bookings of $867M (up 308% YoY) and a 2.3x book-to-bill ratio. Backlog reached $1.98B, up 157% YoY, signaling strong future revenue visibility from data center and grid infrastructure demand.
Exhibit 99.1 view on EDGAR → -
high
Company raised full-year FY2026 guidance: revenues now $1,350-$1,390M (82% growth at midpoint), Adjusted EBITDA $310-$320M (86% growth), and Adjusted Net Income $197-$207M (128% growth), reflecting accelerating demand and strong execution.
Exhibit 99.1 view on EDGAR → -
high
Adjusted EBITDA margin expanded 200 basis points sequentially to 22.4% despite under-absorbed labor and overhead from facility ramp-up (1.8% of revenues, down from 2.0% in Q2). Further margin expansion expected in Q4 as production volumes increase.
Exhibit 99.1 view on EDGAR → -
medium
Operating cash flow improved $37M YoY to $29M despite working capital investments. Capacity expansion remains on track for completion by end of FY2026, positioning the company to support up to $5B in annual revenues with lower future capex.
Exhibit 99.1 view on EDGAR →
Summary
Forgent disclosed exceptional Q3 2026 results that underscore accelerating momentum in power infrastructure markets. Revenue more than doubled year-over-year to $379 million, while bookings reached a company record of $867 million—up 308% year-over-year and representing a 2.3x book-to-bill ratio.
The backlog now stands at $1.98 billion, providing substantial revenue visibility as data center and grid modernization projects drive demand for the company's power solutions. Profitability improved alongside revenue growth. Adjusted EBITDA reached $85 million with a 22.4% margin, expanding 200 basis points sequentially despite ongoing headwinds from facility ramp-up and accelerated hiring.
These absorption pressures declined from 2.0% of revenues in Q2 to 1.8% in Q3 and should continue easing as new facilities reach target production rates. Management raised full-year guidance significantly, now expecting revenues of $1,350-$1,390 million (82% growth at midpoint) and Adjusted EBITDA of $310-$320 million. The company's capacity expansion remains on schedule for completion by fiscal year-end, positioning Forgent to support up to $5 billion in annual revenues with materially lower capital expenditure requirements thereafter. With a record backlog, improving margins, and positive operating cash flow despite growth investments, the company appears well-positioned to capitalize on structural tailwinds in power infrastructure spending.
Section-by-Section Diff
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Net Income for the fiscal third quarter was $24 million, an increase of $16 million or 190%, compared to the prior year’s quarter. Adjusted Net Income for the fiscal third quarter was $55 million, an increase of $31 million or 132%, compared to the prior year’s quarter. Net Income and Adjusted Net Income increased primarily due to higher gross profit, partially offset by higher selling, general and administrative costs. Net Income margin was 6.5% in the third quarter, approximately 650 basis points higher sequentially, as the second quarter included the write-off of $10 million of deferred financing costs related to the refinancing of the Company’s term loan. ... Adjusted EBITDA for the fiscal third quarter was $85 million, an increase of $41 million or 96%, compared to the prior year’s quarter. ... Adjusted EBITDA margin was 22.4% in the quarter, representing an increase of approximately 200 basis points quarter-over-quarter.
Net income was $24 million (up 190% year-over-year) with a 6.5% margin, up approximately 650 basis points sequentially due to the prior quarter's $10 million write-off of deferred financing costs. Adjusted EBITDA was $85 million (up 96% year-over-year) with a 22.4% margin, up approximately 200 basis points sequentially. The margin expansion reflects revenue growth outpacing operating cost growth, though margins were still impacted by under-absorbed labor and overhead costs from accelerated hiring and new facility ramp-up.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 30, 2026 · How we verify